India ends subsidy on kerosene, LPG supply to Bhutan

There is speculation that the move aims at apparently punishing the Bhutanese government for hobnobbing with China.

advertisement

India Today Online

New Delhi

July 6, 2013

UPDATED: July 6, 2013 13:49 IST

Bhutanese children at Jityang village in Punakha. Photo: Desmond Boylan/Reuters

India has withdrawn its subsidy on kerosene and cooking gas to Bhutan, putting the Himalayan kingdom in a crisis, said a newspaper report on Saturday.

According to the report, prices of the two fuels have risen sharply in Bhutan as result of the decision and its government has written to India's External Affairs Minister Salman Khurshid on the issue.

It is not known why India took such a step, but there is speculation that the move aims at apparently punishing the Bhutanese government for hobnobbing with China.